Economic Battle Roils Israel

Workers Strike to Save Jobs
And Benefits as Leaders Trim Budgets

By

Karby Leggett Staff Reporter of THE WALL STREET JOURNAL

Updated Aug. 18, 2004 12:01 a.m. ET

HATZOR HAGALILIT, Israel -- In 32 years as this town's official grave digger and expert on religious burials, Daniel Abokasis never turned down a request for help. Until this year, when he went on strike.

"I had no choice -- the government stopped paying my salary," complains Mr. Abokasis, a rotund 64-year-old union member and father of nine.

An epic economic battle is raging in the Jewish state. On one side are...